Living Under the Same Roof After a Breakup? Centrelink's Solution for Seniors in Australia July 13th, 2023
Life can sometimes present messy situations, and when ideal outcomes seem unattainable, pragmatism takes over. This is particularly true when a long-term relationship breaks down during your senior years. The thought of relocating to a new home and starting over is likely the last thing you want to do. However, there may be a simple and effective solution available.
Recognizing "Separated but Living Under the Same Roof"
Fortunately, an arrangement known as "separated but living under the same roof" is gaining recognition and support from various authorities, most notably Centrelink.
Centrelink's Recognition and Monitoring of the Arrangement
Centrelink acknowledges the existence of these relationships, but they are also aware of the potential for abuse. If each member of a couple is assessed as a single individual, each person could potentially receive a pension payment of $1,064 per fortnight. When combined, the total payment of $2,128 is $524 more per fortnight than the combined couples' pension rate of $1,604.
Steps to Take for Protecting Finances in the Arrangement
According to Jacqui Brown, a family lawyer at Lynn & Brown Lawyers, many of the steps applicable in a breakdown where one party moves out should also be taken when living under the same roof. Ms Brown emphasizes the importance of protecting what you have and allocating future expenditures to the responsible party.
"It's crucial to isolate your finances by separating bank accounts and loan accounts, including credit cards. However, it's also important to recognize that you may need to maintain a joint account for paying household bills," Ms Brown advised.
She further stated, "The most significant evidence will be that you have formally commenced the legal process of separation. This can be achieved through consent orders, which is an easy and cost-effective method, or by hiring a solicitor."
Factors Considered by Centrelink in Assessing the Arrangement
When making a determination, Centrelink typically examines five key areas: financial arrangements, the nature of the household, the social aspects of the relationship, the presence or absence of a sexual relationship, and the nature of the commitment.
Independent financial planner Annette Sinclair explains that Centrelink delves deeply into the relationship to ensure no exploitation of the system is occurring. Some individuals might perceive these inquiries as intrusive.
"They will generally require third-party verification that you are indeed single. This verification can come from social workers, religious figures, or lawyers," says Annette Sinclair.
"They will probably want to see independent financial arrangements, independent sleeping arrangements, and arrangements for your assets after death. While these factors are not definitive, they can serve as indicators of the legitimacy of the arrangement," Mrs. Sinclair added.
It is important to note that this assessment is not a one-time test to pass. Centrelink will review the arrangements regularly to confirm their ongoing validity.
Maintaining Friendship and Care While Being Assessed as Singles
Despite the breakdown of the relationship, it is not necessary for the parties involved to have a hostile relationship in order to be regarded as singles living under the same roof. Caring for each other and maintaining a friendship does not exclude you from being assessed as individuals residing together.